- US stocks rose on Tuesday in hopes of a coronavirus economic aid package coming soon.
- Stocks recovered from Monday's falls that occurred even after the Federal Reserve took unprecedented measures to support the US economy in the face of the aftermath of the coronavirus outbreak.
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US stocks rose on Tuesday and recovered from a more than three-year low on Monday due to growing optimism among investors that a comprehensive economic relief package for corona viruses will follow soon.
In overnight trading, futures contracts on all three major US indices rose by more than 5% and triggered so-called limit-up trading stops.
Profits continued when House Speaker Nancy Pelosi said on a Tuesday morning call to CNBC that this was the case "Real optimism" that an agreement could be reached in the next few hours.
The main US indices stood at 12:25 p.m. ET on Tuesday:
The Washington Post reported early Tuesday These majority leaders approached an agreement on a $ 2 trillion coronavirus bailout after several attempts to get one through Congress failed. Treasury Secretary Steven Mnuchin and Senate Minority Chair Chuck Schumer were optimistic that an agreement could be reached soon, the report said.
Shares slumped on Monday as leaders failed to agree on an agreement to contain the economic consequences of the coronavirus pandemic. Pressure has increased as many states have bans to curb the spread of COVID-19, the disease caused by the virus.
Investors also shook off unprecedented measures announced by the Federal Reserve on Monday to support the economy during the outbreak, including unlimited bond purchases and help for local governments and businesses.
"The bottom line is that this market has been extremely dangerous since February," wrote Fundstrat's Thomas Lee in a note on Tuesday. "But there is a glimmer of hope."
The market appears to have "hit an internal low, similar to October 2008," he wrote, meaning that a recovery could begin soon.
(tagsToTranslate) stocks (t) US stocks (t) markets and economy (t) US markets and economy (t) US markets (t) coronavirus (t) coronavirus pandemic (t) s & p 500 (t) Dow Jones Industrial Average (t) t) Nasdaq Composite (t) Market Wrap (t) Stock Wrap (t) Recessi